State RegulationsCO specificDifficulty 1/5
Under Colorado law governing insurable interest in life insurance (C.R.S. § 10-7-701 through 710), when must an insurable interest in the insured's life exist?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under C.R.S. § 10-7-701 through 710, an insurable interest in the insured's life must exist at the time the policy is issued. The Colorado statutes do not require the interest to persist at death, at claim time, or at policy anniversaries.
Why the other options are wrong
- B) Existence of insurable interest at the insured's death is not required by the Colorado statutes.
- C) The timing of a claim submission has no bearing on whether insurable interest exists.
- D) Policy anniversaries do not retest whether insurable interest exists.
Memory hook
Insurable interest is an at-issue test, not an at-death test.